- In the Senate, Kisii Senator Richard Onyonka petitioned the House’s Transport Committee to establish the facts about the deal.
- Onyonka wants KAA to Provide details of the contract between them and transaction advisor ALG a Spanish firm.
Parliament has launched investigations into an alleged private deal to lease the Jomo Kenyatta International Airport (JKIA) to an Indian firm.
In the probe that could put the Ministry of Transport and the management of the Kenya Airports Authority on the spot, the lawmakers are seeking to establish the details of the deal.
The development comes after revelations emerged that the KAA has entered into a deal with Adani Airport Holdings Limited, to operate the country’s biggest and busiest airport.
The move has triggered uproar with Kenyans seeking to know the truth or otherwise of the claims.
Already a lawyer Titus Makhanu has written to the KAA seeking information regarding the privately initiated proposal (PIP) for the development and operation of JKIA by the firm.
In a letter dated July 17, 2024, Makhanu claimed that after the lapse of the 30 years, ADANI Airports will own 18 per cent Equity in the project for life despite not funding anything.
“This is absurd. Considering that the project is of serious public interest and stake, urgently supply us with the information failing which, you may not withstand the next cause of action,” Makhanu stated in the letter.
In the Senate, Kisii Senator Richard Onyonka petitioned the House’s Transport Committee to establish the facts about the deal.
Onyonka wants KAA to Provide details of the contract between them and transaction advisor ALG a Spanish firm.
In the probe, Onyonka wants the senate committee to establish the ownership of the company, processes undertaken to identify and final award of the contract to develop an Air Transport Policy in Kenya and subsequent payment of Sh160 million to the company.
Further, the senator wants the Airport management to furnish the Senate with the notice of the meeting, agenda, minutes and resolution of the board meeting convened by KAA on July 15, 2024.
“In the statement, the committee should state the reasons for the government plans to avail free land to the company to build a city-side development on public land which may lead to land issues in areas surrounding JKIA,” reads part of the statement.
However, on Monday, the government denied any plans to sell the airport.
Prime Cabinet Secretary Musalia Mudavadi told MPs that there are no plans whatsoever to put the airport on sale although there are long-term plans to upgrade the facility.
“This is a public asset, it is a strategic asset and if it was going to be sold, you can only do it after a full public process that Parliament endorses,” he said.
“So anybody who is giving the impression that Jomo Kenyatta airport has been sold is not being factual.” h
Onyonka claimed that KAA entered an agreement with Adani Commercial a private company to ‘Build, Operate and Transfer’ to lease JKIA and the process to pay a fixed concession fee as will be agreed in the concession agreement.
In the statement, Onyonka claimed that the tenure of the model was to be 30 years where the assets developed through capital expenditure by the company will be transferred to KAA at the expiry of the concession term.
The lawmaker added that the value was to be determined and agreed upon by the parties.
“The company will be entitled to set the charges it levies from airline and other users for its services at JKIA among other proposed terms of the concession,” reads part of the statement.”
Onyonka also wants the panel to explain the government’s plans to provide free land to the company for a city-side development on public land, which may lead to land issues in areas surrounding JKIA.
“We must not allow the auctioning of our International Airport. They wanted to privatize it, they failed now they are trying to enter into backdoor deals with international firms in total disregard of the law,” Onyonka said.
The government has denied claims that JKIA is up for sale.
The clarification follows weeks of claims online that the Airport had been leased to a foreign entity.
But speaking on Monday while appearing before the Budget and Appropriations Committee at County Hall, Prime Cabinet Secretary Musalia Mudavadi said there are no plans whatsoever to put the airport on sale although there are long-term plans to upgrade the facility.
“This is a public asset, it is a strategic asset and if it was going to be sold, you can only do it after a full public process that Parliament endorses. So anybody who is giving the impression that Jomo Kenyatta airport has been sold is not being factual,” he said.
The Prime CS, however, said there is a need for the Airport to be modernised including the construction of a new terminal.
He said previous plans to erect a new Greenfield Terminal never materialised after litigation stalled the contractual agreements.
“What we know that is important is that going forward, the Kenya Airports Authority must look at its investment programme very carefully, make sure that everything is transparent so that during the expansion process of the second terminal, if it’s under the PPP arrangement, let it be done properly, thoroughly through the legal process so that everybody knows what is going on,” he said.
Mudavadi further said that the government is working on a long-term strategy to position Nairobi as a logistical hub part of which will involve having cities like Mombasa and Naivasha with operation centres at the airport.